This blog is a result of the heavy censoring of the media by the military dictatorship regime.

Monday, June 25, 2012

Pflieger: Air Pacific in the money again

Flying high again atfer restructuring. pic escape at sorenlarsen

Air Pacific has announced what it says is its first operating profit since a $91.8 million loss two years ago saying it's a result of more bums on seats and and a tighter run operation.

CEO David Pflieger is reported as saying the profit was achieved on a combination of 'significantly increased passenger numbers, a large drop in costs associated with the airline's previously poor record for on-time departures, a more competitive schedule into the highly competitive Sydney market, and more efficient use of a smaller fleet of aircraft.'

"To report a profit in a year that witnessed significant fuel cost increases, strong and continued competition in a key market from two low cost carriers, and two major flooding crises, is a rousing testament."

A report on a New Zealand investment website says the airline has recorded a group surplus before tax of $13.4 million for the year to March 31, compared with an operating loss of $3.7 million a year earlier.

It says the airline announced a group statutory profit of $10.7 million for the year, compared with $25.3 million in the previous year, but the earlier year's profit reflected one-off items relating to cancellation of aircraft deliveries.

Air Pacific's group operating revenue of a reported $678.3 million is said to be up 15.6 percent for the year.

That group result supposedly includes its subsidiary Pacific Sun as well as a 38.75 percent stake in the Sofitel Fiji resort on Denarau Island.

Air Pacific's woes two years ago were blamed on the arrival of Australian budget carriers, Jetstar and Virgin.

Pflieger says the campaign to turn Air Pacific's fortunes around is far from done: "We remain mindful that a spike in fuel prices or changes to market conditions and therefore travel plans could impact our success while we finish restructuring."

The airline last month announced it would resume the original name of Fiji Airways to cash in on the 'Fiji' brand and is buying three new Airbus A330-200 planes.

No mention in the sharedot.co.nz story the airline is being kept alive by FNPF funds although it says Air Pacific is 'guarded about its passenger metrics', but it supposedly carried an additional 85,000 customers last year, compared with the year before, and 122,000 more than in the 2010 financial year.

No mention either of the ongoing leaks from staff of the inner turmoil within the airline and ongoing departures, including the most recent information sent to us about six more pilots resigning 'over frustration at management and for better work conditions from overseas carriers.'

78 comments:

The Oracle
said...

Is this profit due to David Pflieger's leadership skills or is it a flow-on from the measures put in place by Campbell? Also, is it a result of the savings from cancelling out on the AirBus order? To turn around in a single year from a net loss to a net profit of $16m is no small achievement. But we need to scrutinise the annual report before offering accolades and proclaiming "rousing testaments" (to what might I ask?). I just hope this is not another Fiji Broadcasting type - "loss to profit within a year" by juggling the accounting figures? Putting more bums on seats is one thing.. but that only counters the loss in revenue from operating smaller bodied aircraft on Fiji's main export routes. Let's see the figures. If, indeed, the profit is from David Pflieger's hard work, then all credit goes to his team. If not, then he and his team might want to add their bums to those seats on their way out.

editor,When after losing his high profile legal case in a British court to avoid extradiction to Sweden the WikiLeaks founder and editor in chief Julian Assange jumped bailed to hole up in the Ecuadorian embassy to seek political asylum, I started to think to myself that the man could be making excuses to avoid his day in a properly constituted legal court in Sweden on alleged sex offences.That is until I started to read the book The Interrogator by Glenn Carle ( Scribe Publications 2011) given to me a few days ago on my birthday.The book is " a CIA agent's true story". Very early in the book at page 13 Carle tells that the US State authorities detained prisoners who they regarded treasonness " apparently intending to keep them [detained] forever.*..with no due process and no realistic prospects for release or trial".This has made me wonder again if Assange does indeed have a well founded fear of persecution at the hands of the US state authorities?He has maintained from the outset that he fears he will end up in the hands of the US authorities if he is extradicted to Sweden because of the publication of the US diplomatic cables in the WikiLeaks website. The US is on record for stating that Assange has acted in a treasoness manner against the US.Now does Assange suffer from a persecution paranoia or does he have a well founded fear of political persecution?I am now inclined to think the man does have good grounds to fear being handed over to the US.Yours sincerely,Rajend Naidu

The Oracle is right: how could Air Pacific have made such a big turnaround in such a short time? Also, we have no way of really knowing where the profit was made. There must've been a huge cash injection for it to be back in the black that much and that fast.

"Air Pacific’s net profit fell from $F24.8 million ($44.45 million) in 2010-11 to $F11.4 million in the year ended March 31 but it converted a $F3.7 million 2010 operating loss to a $F16.5 million operating profit. The airline said the 21010-11 statutory profit was inflated by the decision to cancel delayed aircraft."

So in real terms they still had a decrease in profit.. Need to look at what caused the profit to decrease eh. I reckon it was gremlins.

Rajend, we're all a little tired of your anti US rants, first in the dailies, and now on the blogs. If you have a bone to grind, take it to the US. On this blog, we Fiji residents who pay our taxes here would rather worry about our own leadership, rather than your morsel trouble with the US. C4.5, expected a little more editorial discretion from you on this.

NPBT ( net profit before tax) was mainly caused by dropping all the Management accruals of FJD9miilion thats always been kept by Management to be dropped on "rainy days" so that Air Pacific could stay afloat in the books. In real terms there was no real monetary profit made. They dropped the huge accruals so that Operating expenses could be reduced, majority of these Management accruals are fuel cost accruals. This is what we call "cooking the books". This is the hidden secret in Air Pacific's cost reduction strategies, not compliant with the International Financial Reporting standards and GAAP at all..

The usual style of the regime and Air Pacific is to show off about any success so an increase in passenger numbers, if there was one, would've been announced well befre the financial report. Sounds like a scam. Agree also with the blogger who queried such a big profit in light of the huge fuel costs. I smell a rat.

Just check their Cash Flow forecast Versus Actuals, It says it all. there is no real profit. APL is financed by debt and Liquidity Levels are very low, almost dry. So why painting us a rosy picture when we can read you very well inside out??? KOI VT. Who are you trying to fool Philger!

Even getting rid of staff wouldnt have saved them that much and remember they are buying three new planes so are in hock to FNPF. Did they ever get any offshore loans as they said they were going to???

You're dropping your huge management accruals so that you can cover your huge consultancy expenses and hefty packages paid to your 9 expatriate consultants. This is a rip off to us patriotic Fijians. WE know what you re up to inside that hangar, so dont try to con us with your figures. Its all a lie and thats why you dont want the audited accounts to be publicised. Cmon Dave I know you too well. Stop your lies and follow your wife and kids back to the USA where you rightfully belong.

"It has been revealed that the airline has also carried 85,000 more passengers than it did the previous financial year and 122,000 more passengers than it carried in the 2009 and 2010 financial year."...Where have these extra passengers come from? Have they abandoned Jet Star?? Are they first time travellers? Where have they come from, Dave - please tell us.

"It has been revealed that the airline has also carried 85,000 more passengers than it did the previous financial year and 122,000 more passengers than it carried in the 2009 and 2010 financial year."...Where have these extra passengers come from? Have they abandoned Jet Star?? Are they first time travellers? Where have they come from, Dave - please tell us.

David the profit was by cutting my meal,giving me a cup cake for breakfast,is this what Yankees eat back home ,and look at your staff ,4 staffers on a 737,labour department to look at ???why is the union sitting like a duck/kamlesh is it that you have been paid??

Smoke and mirrors indeed. Wonder why Air Pacific has not mentioned the recent cancelled flights to their asian destination, or the money wasted in expat pilots not meeting basic levels of proficiency, or the number of local pilots looking overseas for work. Tsk tsk. How about announcing actual figures that mean something like ASK's, RPK's and LF's? Anyone else seeing the cracked mirror?

Absolutely crap.........we in the accounting profession use the term creative accounting ......were the accruals taken into account ......i definately dontvthing that the reporting mechnism did not do so in accordance to International accounting standards .....which dumb c.a firm did the audit on these accounts .....was all appropriations taken into account ......what bout the divident payable to govt and qantas ......i see pigs flying

@anonymous 9.18pm..thats still ok. by next yr, its a rumour that meals will be cut to 1/4 cup cake and 1/2 cup tea/coffee..LOL..still better than what yankees eat back home..thats why they left the USA to work in FIJI..looking for money coz they are not so well paid in Amerika..simple as that

APL CEO - A debt collateral of +FJD200million being fully funded by FNPF to pay Loan deposit from European Union.Total loan is 1.8billion Fiji Dollars.Qn1: How do u make a profit when u've just taken a big loan of that much.?Q2, How will you repay the loan back to a) FNPF b) EU? Q3) will it be paid back by the next CEO? because by the time repayment period starts , your contract is already up so its not your problem to pay back the loan? Q4) Whats gonna happen if APL cannot repay this 1.8billion loan, Will FNPF repay this loan on APL's behalf? If so, what are the implications to the ROI in FNPF and the interest to be credited to the members' accounts in future years to come?. This is so unfair to the FNPF members as our funds wont be earning enough returns in the future, contributing to a lesser sustainable pension fund for our future pensioners. And for you APL, thanks for always piggy-backing on other institutions at the cost of the workers lifetime savings. You have made the country suffer more economically.

Figures sound like something that could only be dreamt up by somebody like conman Rajesh.

Coup 4.5 & Rajesh you promised us your reference letter days ago - Where is it or is it another pipe dream of yours - You kept on telling people in Fiji that you had a reference letter from Helen Clark when no such thing exists except in your dreams.

The saving is from staff leaving air pac for greener pastures. talk to any air pac staff. their salary has been cut and overtime pay have been abolished. staff get time and quarter for overtime. none other com[any in Fiji practices these things. or by the way, just last week air pac bought three top of the range SUV vehicles for its expariate staff. he is making money at the expense and slave like treatment of the local staff while his expat friends are all having fun.

FIJI Television Limited will not only pay out more dividend per share but has also recorded an unaudited profit after tax in access of $2 million from its previous annual payout.

A statement issued by the South Pacific Stock Exchange, bearing the Fiji Television letterhead yesterday revealed the company made $4.3 million in unaudited profit after tax for the 11 months that ended last month.

Under trying economical times, the company paid eight cents per share dividend to its shareholders, chairman Isoa Kaloumaira said in a statement yesterday.

The one cent increase in per share dividend means Fiji Television paid out a total of $824,000 from unaudited operating profits for the current financial 11 -month period. The company paid $721,000 for the corresponding period last year it said.

The payout will be carried out on July 23, the company said.

For the previous corresponding period, Fiji Television made a unaudited net profit after tax of $2.05 million, the company said.

But the company's income from other sources for the last 11 months dropped to $1,991, 496 compared to $2,709,066 for the 11 months ending May 31, 2011.

FIJI Television Limited will not only pay out more dividend per share but has also recorded an unaudited profit after tax in access of $2 million from its previous annual payout.

A statement issued by the South Pacific Stock Exchange, bearing the Fiji Television letterhead yesterday revealed the company made $4.3 million in unaudited profit after tax for the 11 months that ended last month.

Under trying economical times, the company paid eight cents per share dividend to its shareholders, chairman Isoa Kaloumaira said in a statement yesterday.

The one cent increase in per share dividend means Fiji Television paid out a total of $824,000 from unaudited operating profits for the current financial 11 -month period. The company paid $721,000 for the corresponding period last year it said.

The payout will be carried out on July 23, the company said.

For the previous corresponding period, Fiji Television made a unaudited net profit after tax of $2.05 million, the company said.

But the company's income from other sources for the last 11 months dropped to $1,991, 496 compared to $2,709,066 for the 11 months ending May 31, 2011.

Is this an attempt to make Khaiyumlooks good to the general public?The question is:Where is Bainimarama? Is he in Fiji or in China, is he alive or is he dead?Noone has seen this illegal PM anywhere in Fiji?Did Khaiyum have him poisoned before he shipped him back to China hospital for checkupand operation? we're checking him up but unable to get anything important?

The Fiji TV profits reek with questions?1. Where did the profits come from?2. Why was dividends declared one month before the end of the financial year?3. Why was it declared without a proper audit?4. There was no summary of the breakdown of the Financials which should always be the case for a public company registered in the SPSE.5. Is the dividends geared for the two only big shareholders... so what about us small shareholders.

Valataka na Dina, you royal hypocrite! Here you are, saying that America, like Fiji, has been hijacked by evil men. Tomorrow, you'll be back begging the Americans again to bomb Delainabua. Why, so you can denounce them again? If they're so evil, why do you keep looking to them for Fiji's salvation?

KMPG is the external auditor and their integrity is questioned here. talk abt "kila vata" club.js give them heaps of "paisa" and their mouth is sealed,,as usual..creative accounting indeed. Something is rotten in the state of Denmark

Anonymous 12:34, where have we moved on to? Has Fiji made economic progress since 2006? Is the overthrow of the elected government, repeated postponement of elections, loss of civil liberties, gaoling, torturing, firebombing and expulsion of political opponents, suppression of the church and the labour unions, and the purported abrogation of the Constitution your idea of political and social progress? All we've done is to moved further down Treason Road to deeper misery.

if APL cant payoff their 1.8million loan, then FNPF will take over loan from EU, after a while, they will start providing for impairment, then slowly they'll impair it, and then write it off..smart eh? then our 1.8 billion investment + interest goes down the drain. FNPF is the pillar of the economy,and savior and is slowly sinking too.Fiji is doomed!

Television Amendment Decree includes conditions for revocation of licensePublish date/time: 26/06/2012 [13:04]

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ShareThe Television Amendment Decree which includes the conditions for the revocation of a license is now gazetted by President Ratu Epeli Nailatikau.

The decree came into effect last Thursday and a new section states that if a licensee is found to have breached the Media Code of Ethics and Practice under the Media Industry Development Decree, the Minister may, by notice revoke or vary the license.

However, before making any decision the Minister shall provide the licensee with such opportunity as determined by the Minister to provide a written explanation as to why the license should not be revoked or varied.

The Television Decree 1992 is also amended with the inclusion that no court, tribunal, commission or any other adjudicating body shall have the jurisdiction to accept, hear, determine or in any other way entertain any challenges by any person or body which question any decision by the Minister, the validity of the process of the issuance of any license and any condition imposed by the Minister in granting a license.

The Television Amendment Decree is a classic example of the now commonplace deprivation of due process in Fiji. As usual, ASK can, and will, use the regime's usurped governmental authority to ruin a perfectly fine business simply because it competes with his brother's. Those targeted have no appeal to anyone, except to ASK himself, and good luck with that!

Vijay, does it have a section stipulating that favourable reconsideration of revocation shall be entertained if appropriate payments of bribe (or words to that effect)shall be made in private to his majesty the AG.

The profits of Air Pacific are a result of strategic changes done in the company that most people in Fiji are not used to seeing...of course sacrifices had to be done therefore, people leaving for "greener" pastures, either they could not fit into the new regime of things or pressure to change forced them to look elsewhere, and lo and behold they found better paying jobs...All in all we all become winners...there are now opportunities for new pilots to get jobs at air pacific...let's all be positive about changes in our country and not let foreigners who sit behind their computer screens and tell us that we are shite...we are better then that...everytime we agree with them we fail to move forward...listen to feedback, learn, but keep moving forward through positive actions rather than negative talk..

agree with anonymous 7.04pm. Evryone is a winner in these winds of change!~!vinaka Bainimarama and to all that have contributed to it. Lets embrace the future together. A new Fiji. - but Fiji leaders must always put God first in all that they do.

@Anonymous 7:04 yes 140 children got the "winds of change" in the last 12 months. They were admitted to hospital for malnutrition in Lautoka and Suva. Dr Simeli Tukuna Head of Public Health in Fiji was so shocked when showed the pictures , he thought he was in Somalia.Vinaka vaka levu Binimarama na veivakalolomataki.You people praising Bainimarama are pathetic. You should stop burying your head in the sand and see what is REALLY happening.

At anonymous 8.41pm....talking about change don't mean I support Bainimarama...i like many want to see democracy back...but time is too short for us to just sit back and coup 4.5 everything. The world is moving on...has moved on...has anything been done for the malnourished kids while we blamed govt for their demise?...I want us to make Fiji the greener pastures and I will continue to take my fight to the field...that's my passion for this country...that is my support...that is my goal...is it yours? God bless us all!

Anon@8:41PM...Worry no more mudou,the illegal PM is confirmed Dead in a Chinese hospital? All the writeup in the Medias is been carefully arranged by Khaiyum and he's even appopinted himselfas the acting PM? What happen to Mosese Tikoitoga? He's possiblygoing through the same process asBainimarama? Bai is a power lunaticand had he been OK, Khaiyum wouldn't be running around calling himself the acting PM,cause Bai would have nailed this assole to the post? Khaiyum is not fully incontrol yet,as he has AZZIZ on his side? He has some military supportbut he doesn't want to pushed his luck just yet?He knows that he's going to try and get the high rankin officers on his side first?He is doing his best to try and geteveryone fooled.Wouldn't it be something if this assole successfully pulled a civilian coupand win it all???

Air pathetic it is..!whatever profits it s making we cant see any improvement!!! Moce Jo!.air pacific is no longer them fijian pride!..flight attendants too much walking up no down them aisle looking pretty but services sa sona.

someone needs to chk air pacific's balance sheet to see the real picture. whats their capital structure as at 31/2/12? i bet its 90% debt and 10%equity..u better be careful thats a bad sign and its a sign of your boat sinking..HMS Titanic ka dina..moce moce malo au pito pito